What is your most successful forex binary option-trading strategy?

Hello!I am not sure about if any strategy will help you in trading binary options… The scheme of it is so that you need to lose more and more, and you become exhausted of constant active trading and constant losses, so you blow your account.

In Forex, things work differently. This market exists for a quite a long time and if you are not working with a scam broker, you can create a quite profitable strategy.

I personally use S&R levels and Price action patterns that help me in identifying the trend and possible reversals, as well as the entry points (on smaller timeframes). As for indicators.

Binary Options Auto Trading Reviewed

When you wish to trade in binary options but are unsure of the best way to get started this can be the perfect solution! Binary options auto trading software allows you to create a binary account and trade without needing to do anything. The software will select the right trades for you and purchase the options; you simply need to view your profits as they grow. The real question is with all the automated solutions available is this a genuine investment opportunity or a scam?

Binary Options Auto Trading Scams

It is likely that you will have heard the word ‘scam’ connected with automatic binary trading software. However, although there are some operators who are only looking to scam you there are many who are offering a fair and legitimate opportunity. The important point here is that you will find those who promote the ‘get rich quick’ scheme by using automated software. This is not possible. It is possible to generate a significant amount of funds by using this software as part of your overall investment scheme.

Every automated binary trading site should advertise their success rates. They may even offer a guarantee. You will often find that these firms advertise their win rate as above ninety percent when in fact they are closer to seventy five percent. This is the same win rates as you can often find in the currency markets. In fact, this is a high enough rate to provide a genuine profit on your investments. In order to make consistent returns and generate the higher levels of profit you will wish for you should view the signals as part of an overall strategy. This will ensure you monitor all other factors, including economic movements and global news. If you are unable to utilize all the different approaches it will be difficult to continue making profits for the long term.

Using Binary Options Auto Trading to Make Money

The majority of automated binary training software uses algorithms which assess price movement in-line with past and current trends. When the right criterion is met a signal is generated and the trade is placed for you. These are the systems which provide approximately seventy five percent win rates. Some of these automated robots will not even perform as well as this and will actually cost you money, rapidly depleting your funds. However, if you sign up to an account at one of binary options signal providers, you will be provided with a win rate of eighty percent. Whilst this sounds excellent, it is likely that this will translate into an accuracy of roughly seventy five percent. This means that an eighty percent win rate will become a fifty six percent actual rate of return. If you win fifty six percent of your trades then you may just about break even.

It is therefore difficult to call this type of trading a scam although it is not likely to generate the profits you hope for. The important lesson to learn here is that an expected win rate is likely to be on the assumption the signals are right every time; assessing the signal accuracy will help you to decide how good the real win rate is and whether it is worthwhile investing in a specific automated binary trading robot.

The Binary Options Auto Trading Money Generator

Some of these systems will provide you with their services for free. However, the majority of them will charge a fee of up to $100 per month. Alongside this the automated provider will earn a good rate of commission from the broker which you sign up to. In general the higher your initial deposit the better their commission. Most software providers will seek to encourage you to sign up with as many binary options brokers as possible to ensure they have the maximum income; this is how they are the real winners every time.

Benefits of Binary Options Auto Trading

The most obvious benefit of any automated binary trading software is to allow you to place trades when you are unable to yourself. The software will generate the signals which indicate when to trade and will then place the appropriate trades for you. This should provide you with the opportunity to generate a much higher level of profit simply by the increased trades possible in automated trading.

The automated binary trading software is exceptionally easy to set up and can be a very useful way for anyone new to this type of trading to gain an understanding of binary options trading. In general you should simply need to create an account and add your binary broker details.

As an added bonus the use of a payment service known as ClickBank means that there is a sixty day guarantee on any product purchased through the scheme. As most binary trading services are bought using this service you will be able to get a refund if you are not completely satisfied with the agreed timeframe.

The Cons of Binary Options Auto Trading

Unfortunately it is impossible to confirm how good any service is before you commit to using their services. This means you will have to part with your cash before you can properly assess the Binary Option Auto Trading software.

As already discussed, the suggested win rate is not necessarily accurate. It is relatively easy to create a screen shot which has been adjusted to state what the software provider wants it to. This must be taken into account along with the cost of signing up to the software. To achieve a small profit you will need a proven win rate of at least seventy percent. Using automated binary trading software means that you will no longer have a say in which trades are placed. You must be sure that a system which trades without you watching will take the appropriate risks; or you will quickly deplete your funds.

In general the firms that offer the automated service will be more interested in keeping binary brokers happy than you; this is because this is where the bulk of their funds comes from. Their main aim is simply to get you to sign up; after that if you make money or not it is relatively irrelevant to them. It is also important to note that your personal details will be shared between the automated software owners and the brokerages you connect to. Receiving spam is a common complaint after signing up.

Finally, you should be wary of any software which you download as it can have viruses or malware attached to it. As the majority of providers do not verify their download is free from these you will use them at your own risk. This could be potentially harmful to your computer and your personal information.

Choosing between Auto Trading or Signals

The decision as to which suits your purposes better must be yours. However there is a distinct advantage to manually trading with automated signals. This ensures you are always comfortable with your signals, trades and the rates of return. The better you understand the binary trading industry the more successful you will be at generating an income.

Binary Options Trading in the UK

For UK investors, trading with binary options is a tax free form of investment with very quick results – minutes rather than months or years. The word binary is used because there are just two possible outcomes – either the trade is successful, and the investor gains a significant return (usually between 75% to 95%) – or the trade is unsuccessful, and the full investment amount is lost.

During 2020 however, European regulators have prohibited the sale or promotion of binary and digital options to retail investors in the EEA. This includes the UK. Only professional clients or professional accounts are now permitted to trade binaries with regulated firms. A professional trader must meet 2 of these 3 criteria:

Have worked for 2 years in the financial industry, or have experience with complex trading instruments.

Unregulated firms may not adhere to the new ESMA rules, and will continue to accept UK traders. This does increase risk for the trader, and makes finding a trustworthy broker even more important. It is however, possible to find brokers regulated outside of the EU that will accept EU traders, and are still regulated by respected bodies.

So ‘binaries’ (or ‘digital options’) are a high risk form of investment, but that risk is offset by the potential for very high rewards with minimal waiting time. Most brokers are regulated, offering consumers the sort of protection they would expect while using financial instruments of this type. Returns from binary trading are also currently viewed as tax free by HMRC.

The main difference between more traditional stockbroker trades, and binaries, is the clear identification of risk and reward before the trade is made. An investor knows exactly how much is at risk, and crucially, also knows the exact value of any potential returns. No calculator, formula, or maths degree is needed to work out profit and loss on a binary option.

This structure of the trades is what has led to the terminology of “all or nothing” , or “cash or nothing” being widely used.

The only decision for a trader is if the value of the underlying asset will rise or fall. The degree of the price change is not important. The trader is purely speculating on whether the price will be higher or lower than the current price, at a specific time in the future.

Short term price movement can be triggered by news stories or headlines, quarterly statistics, buyout rumours or even global security fears.

Trading binary options offers a Yes/No proposition. Although there are variations on the High/Low option, this type of investment will always have a black and white, Yes/No, binary outcome. Where trades can be closed, redeemed or sold mid-trade, payouts have absolute figures of 0 and 100 and prices move between as the market dictates – until closure.

Expiry Times

Every binary option is offered with an expiry time. This is the point at which the trade will end. So the price at expiry is the one that will decide whether an option has won or lost (“in the money”, or “out of the money” in binary jargon). These expiry times can vary from just 30 seconds or 1 minute, (known as ‘turbos’), to a full day (‘end of day’), to even longer in some circumstances – rolling up to a full year.

Generally however, a binary option is used for short term trading – usually under 30 minutes (5 minutes are the most popular). Longer term expiries – and the element of fixed risk – does make them useful tools for hedging or diversifying other holdings.

Payouts change dependant on the asset and the expiry time. Differences can be significant so traders looking to use binary options long term, need to shop around to find the best payout for the asset class (or classes) they intend to trade.

Video Tutorial – Binary Trading Explained

Watch this video tutorial of the IQ Options platform, which shows how to place a binary trade:

Legitimate Investment

Although binary trading is in a period of growth, it remains a relatively unknown product. Over time, this is likely to change. As digital options (as they are also known) offer a very simple fiscal arrangement. They are a legitimate way to play the financial markets.

Binaries offer a clear trading choice, but they are also high risk / high reward. There is however, no leveraged exposure with a binary trade, so the risk and reward ratio is also simple to manage.

Are Binary Options Safe?

Binary options suffer from a poor reputation. This is basically a result of dishonest and irresponsible marketing and cyber crime, more than an issue with the product itself. With tighter regulation, and a better understanding by the wider public, these options can – and will – move into the financial mainstream. Which was where they originally developed.

While FCA regulated agents and businesses may still have their flaws and faults, they are not fraudsters. The angry emails we receive focus entirely on unregulated brokers promising “easy money”, or a route to “get rich quick”. Read our section on avoiding scam brokers below.

Advantages Of Binary Trading

Many of the advantages of using binaries are related or linked. Here we list some of the benefits to using this form of investment – not just for the retail investor, but also to the market makers or brokers:

Risk management

Managing risk when trading binary options is clear cut. The amount of the trade is the full amount that is at risk. This clarifies the risk not only for the trader, but for the broker too. Their pricing model reflects the accurate knowledge of their liability.

Trading Fees And Spreads

The certainty of risk provides a solid foundation for brokers to work within and manage. This leads to low trading feed, tighter spreads and higher payouts. To protect themselves further, they may use a liquidity provider or hedge their own positions. The expensive broker costs of clearing houses becomes unnecessary.

Leverage

Leverage, or gearing, is not generally available with binary trading. This benefits the broker again, as it means all trades must be funded in full. In other words, no trader can default on a trade. With leverage, if things go wrong, there is a real risk of the broker not being paid. This is a big difference vs spot forex or spread betting.

Trader Choice

Layers of complexity can be added to the standard fixed payout option. From a ladder option, to boundary trades or more advanced ‘nesting’ of options to create ‘strangles’ etc – binaries can be used in a huge variety of ways.

A binary trade offers the greatest level of flexibility. They even provide a mechanism to speculate on a market remaining flat, arbitrage, or to take a view on the trade volume of the underlying asset.

Robots and Auto Trading

Auto trading robots (‘bots’) often rely on signals and algorithms triggered by price graphs. Again, these robots attract many of the undesirable operators, and the automatic nature of the trades increasing risk further. New traders should be especially careful. A large amount of ‘due diligence’ is required when trying to find the right robot service.

An alternative approach is for traders to build their own robots using their own entry points. A growing number of brokers now offer traders the ability to put their own trading robot or program together, using simple tools. These hacks allow combinations of technical analysis settings, such as moving averages, Bollinger bands or RSI / MFI patterns, that then open trades when those criteria are met. It has made binary options ‘pro’ robots available to everyone.

Top Robots

Free to join. Flexible settings including indicators, expiry and methods.

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Free Demo Account. Choice of money management and algorithms.

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Scams

Binary trading itself is legitimate, and not a scam. There are however, brokers and signal providers that are untrustworthy and operate scams or frauds.

It is important not to write off the concept of binary trading, purely based on dishonest brokers. These fraudsters continue to drag down the image of this form of trading. Regulators, and rule makers are slowly starting to get to grips with these operations and the industry is being cleaned up. If you want to complain about an operator to our watchdog, please let us know via our Contact Us page.

Avoid scams with these simple checks

“Make money online” or “Get rich quick” marketing. This is a huge red flag. Binary options are a high risk / high reward investment vehicle – they are not a get rich quick scheme and should not be sold as such. A “no loss” system does not exist. Operators making such claims are being dishonest. A binary options millionaire is almost certainly fake. The Brit Method is one high profile example – swerve it.

Cold Calls. Reputable brokers will rarely make cold calls – they do not need to. Cold calls are from untrustworthy brokers. This could include email contact.

Bonus Terms and Conditions. If taking a bonus, read the terms and conditions. Some terms include tying in any initial deposit or capital until turnover requirements are met. The deposit is still the trader’s money – honest brokers will not lay claim to it before any trading has been done. The better brokers will also offer the option of cancelling a bonus if it does not suit the trader. CySec, the leading regulator, has recently banned the use of deposit match bonuses as they believe it leads to clients ‘over-trading’.

Account Managers. Be very wary of any account manager, tipster or ‘guru’ wishing to trade on behalf of clients. There is an obvious conflict of interest – they have jobs with the broker. These managed accounts generally encourage traders to trade with figures way beyond their means. This “upselling” is very harmful. The intensely risky Martingale system is a frequent tactic, and results in many quickly blown balances.

Celebrity Endorsement. Sporting legends or team sponsorship is usually fine – and verifiable. Where this backing should worry rookie investors, is where the name of a mega rich billionaire or credible source is ‘pushed’ as a selling point. Warren Buffet, Richard Branson and Martin Lewis have all been presented as backing certain propositions when they actually have zero involvement – other than to sue the perpetrators for damages via a lawsuit.

A trader must know their broker. Seems obvious – but some operators ‘funnel’ clients to a brokers of their choosing, not yours. If the merchant demands new clients sign up with a particular broker, or they pick the broker from a limited list – do not proceed. A trader should know the broker they are going to trade with!

Being aware of the above methods should help those new to binary trading to avoid the less responsible brands. Improved regulation and more awareness should hopefully reduce these types of complaints. This in turn can allow binaries to move forward.

Already fallen victim? The services of MyChargeBack.com might be of help.

The recent ban of binaries in the EU is ill-thought out, and could well end up pushing more traders towards scams.

Trading Strategy

Our strategy pages covers over 20 known systems, drawn from a range of forum and club chats, plus expert tips and advice. From high risk Martingale, to intricate systems like the Rainbow. We also cover more specialist subjects, like forex , technical analysis, the best price action indicators, trading signals and winning strategy. All this is aimed to help you gain an edge, and win.

Signals

Signals are an alert, sent to traders. They are designed as a trading tool, helping traders to spot opportunities. They can be communicated via a range of methods – email, SMS or from a live signal website or group. Much of the irresponsible marketing associated with binary scams is linked to signals – or auto trading robots utilising them. There are some very good providers out there too. However, in general, learning how to trade binaries is a safer route than using signals to compensate for a lack of trading knowledge.

Do signals work?

Sometimes, but rarely in isolation. Some providers deliver a combination of education alongside signals and that represents a good mix. Traders must be able to fully assess a signal before they can judge the quality of them. We also highlight some of the best providers on the signals page.

Brokers And Reviews

A binary option can be used in a number of ways, and across a huge array of commodities and markets. This means finding the best dealer, best account, or best trading platform, really depends on the needs of the individual investor.

For example, some brokers may focus on forex (foreign exchange) and trading the Japanese Yen, Euro or sterling. Others may be strong on commodities and only offer a handful of FX markets. Likewise, the returns (or payouts) may differ between asset classes, and with these varying by as much as 25%, it is easy to see the importance of making the right selection.

Payment Methods

White label platform providers such as SpotOption, Tradologic or TechFinancials also dictate what products the host site can offer, so a proprietary broker with a bespoke design might be preferable. Payment methods merit some thought – if traders want to use Skrill, Paypal, Neteller or Wire transfer, they need to check the broker delivers that.

Trading Apps

Mobile trading apps delivered by brokers or binary agents can vary in quality too. Some specifically program for the features of specific models, like iPad or iPhone. Others ensure cross platform compatibility, catering for android, blackberry and windows tablets and devices. Some traders may have tailored demands for any hand held app, others less so.

Trade size limits may point some investors either to, or away from, certain trading accounts. Some brokers offer minimum trades of just £1, while others cater for investors willing to invest £200,000 in a single trade. So every investor needs to consider their own trading style before deciding to open an account. Even working out the ‘cheapest’ broker is not as easy as it sounds.

How To Compare The Best Trading Platforms

Our comparison table delivers a quick summary of the key points when comparing brokers. Our detailed reviews then allow potential new users to assess some of the finer points that might confirm their decision. Here is a list of some of the vital comparison points for brokers;

Payouts

Over the counter or exchange traded options

Minimum deposit (Plus deposit and withdrawal methods)

Minimum trade / Maximum trade

Trading platform

News events feeds

Asset lists (Extended lists might include ETFs, bonds and trusts)

Charts / Charting tools (Graph types, forecasting tools)

Expiry times available

Regulation (FCA, CySec, CFTC etc)

Range of options available (Boundary, Ladder, High Yield etc)

Welcome Bonuses

Complaints / Customer feedback

Account Types and Benefits (VIP, Basic, Platinum)

Plugins and Integration. (E.g. MT4 / MetaTrader4 / MetaTrader 5)

Promo perks, Competitions, Leaderboards or Contest Prizes

Some points might be more important to certain traders than others. So finding the “best” will be an individual choice for each new client. A speculator taking a position on the monetary policy of the Bank of England or ECB might be best served by one broker, while the person looking to bet on growth in the Apple, Facebook or Vodafone share price might want another.

Demo Accounts

Most top brokers offer demo trading accounts. These allow new clients to try the services on offer. They can see if the range of markets and investment scales suit them and only proceed to a funded account when they are happy that the right trading account has been found.

Those brokers that do provide practise or virtual balances, have confidence in their trading platform. They are prepared to let new traders see it, and try it out, risk free. The review for each broker will include whether it offers a demo in the “Key Details” section.